EUR Trading Outlook (05-03-2015)

EUR/USD The pair was consolidating the post-EZ services PMI slide into NY’s open. The pair held just below 1.1130 as NY got going. ADP’s miss gave EUR/USD a boost but it could only reach 1.1145. When it became clear no further gains were due, those looking for a larger rally to fade came to market and hit bids. Real money names that were normally patient were noted sellers. EUR/USD dived lower and the slide got a boost on the above f/c US Feb Services PMI. A new trend low of 1.1062 was hit. Option related bids ahead of a likely 1.1050 barrier prevented further losses. The afternoon saw the pair consolidate losses and sit just above 1.1070 late in the day. Traders now look to the ECB for their next cue. The details of the QE plan are expected. US jobless claims are also on tap and an upbeat number will encourage bears further. As it stands now techs show bears in full control on downward biased RSIs and a new trend low. Long-term bears now have the September 2003 low (1.0760) in their sights